Lots to be Thankful for
Happy Thanksgiving to all Gold-Eagle.com readers! We certainly have a lot to be thankful for and one surely doesn't need to be a USA resident to celebrate this time of year. Each and every morning that Eagle and Comet awaken yours truly with Border Collie kisses and nibbles (and a ball), we give thanks for another day above ground enjoying our brief moments on earth.
It has been a while since we last published an essay on GOLD-EAGLE.com but the time seems right to return once again with gold merely a breath away from our $1200 target this weekend.
Twelve hundred USD's is only a bus stop along the way. Make sure you're sitting down, perhaps with a cup of tea or favorite beverage in hand.
Quite often we've seen ABC on top of ABC patterns during bull markets. One may be in effect now. One thing about gold - it likes to perform ABC up extensions. Some of you may not be familiar with ABC up projections so here's a brief lesson.
B minus A plus C = Target
In the example above, the first ABC up target would calculate as thus: The 2008 high minus the 2001 low plus the 2008 low equals the target…or…1033.90 minus 255 plus 681 equals a target of $1459.90.
But that's just a 1:1 ABC up. Sometimes they extend by 38% or 50% or 68% and uncommonly 100%. Our experience with extended ABC up projections is that the more they extend, the deeper the pullback can be.
For now, we'll assume that gold's third wave completion is targeting $1459. It could extend higher. We'll give you the extension calculations which would be added to the 2008 low at $681.
778.90 (A to B) x 1.382 = 1076…so, 1076 + 681 = $1757
778.90 x 1.5 = 1168…so, 1168 + 681 = $1849
778.90 x 1.618 = 1260…so, 1260 + 681 = $1941
It's easy to see that $2,000 gold isn't outside the realm of possibility. But wait…that's just the first ABC up. A five wave pattern would see a pullback and then another ABC up on top of that. As we don't want you to spill that drink you're holding with mouth agape as you ponder the significance of that statement we'll just leave you with this: Gold is likely going a lot higher.